PERTH (miningweekly.com) – ASX-listed Kibaran Resources is progressing the development of its Epanko graphite project, in Tanzania, signing a non-binding letter of intent with GR Engineering Services to negotiate an early works agreement, and ultimately an engineering, procurement and construction (EPC) contract for the Epanko project.
An early works agreement would see GR Engineering undertake detailed engineering design works, and early procurement activities for the construction of a new 460 000 t/y mineral processing facility.
The EPC contract will be based on a target cost estimate model, and will be subject to Kibaran finalising a debt financing programme for the graphite project, as well as a final investment decision and the receipt of all regulatory approvals.
“The company is focused on the remaining regulatory arrangements with the government for the Epanko development so as to secure lender approvals in relation to the debt financing package,” said Kibaran chairperson Robert Pett.
“The company, with representation from its lenders, met with the Bank of Tanzania in May, who provided guidance to the company, and we are working to finalise these remaining matters with the government.”
A bankable feasibility study estimated that the Epanko project would require a capital investment of $88.9-million, to produce 60 000 t/y of graphite.